Eric Boyce

Eric Boyce requested an update on contract price renewals around year-end and their expected impact on price by segment in fiscal 2Q and the balance of the year. He also asked if any further asset sales in additives or intermediates are under consideration, and if not, why it may not make strategic sense.

Answer

Guillermo Novo, Chair and CEO, and Dago Caceres, SVP, Specialty Additives, confirmed most contract renewals (pharma in Europe, coatings in North America/Europe/Asia) are completed or in final form, with results as expected. Only Middle East, Africa, India contracts for coatings are ongoing for April. Guillermo Novo stated that most asset sales are done, and the remaining integrated business focuses on productivity optimization within plants rather than sales, leveraging scale across assets.

Eric Boyce with Evercore requested an update on contract price renewals that occurred around year-end, and how these renewals might impact price by segment in fiscal 2Q and for the balance of the year. He also asked if any further asset sales in additives or intermediates are under consideration and why such sales might not make strategic sense.

Answer

Chair and CEO Guillermo Novo and SVP, Specialty Additives, Dago Caceres confirmed that most contract renewals, particularly in pharma (Europe) and coatings (North America, Europe, Asia), are completed and aligned with expectations, with only some Middle East, Africa, and India contracts pending for April. Guillermo Novo stated that significant asset sales are not planned as the portfolio is now focused and integrated, with past actions involving divestitures and consolidation of non-core product lines. He emphasized leveraging scale across integrated assets for high-value, low-cost-in-use additives.